While the digital transformation has waged its war of change across all industries, in few sectors are the effects of this trend more evident than in FinTech. To illustrate this point, consider this statistic: In 2010, US FinTechs garnered less than $1 billion in venture funding; by 2020, that number skyrocketed to $20.5 billion.
In this blog series, we’ll explore the meaning behind these numbers and shed light on the opportunities that await.
You don’t need us to tell you how critical and competitive customer acquisition is in the FinTech space. But you might not know just how critical and competitive it may be.
For example, advertising spend has increased to $24 billion thus far in 2021—nearly triple from the ad spend in all of 2016. While the product is certainly important for players in FinTech, customer acquisition and retention may be equally so.
Square’s Cash App recently demonstrated an example of some creative and effective customer acquisition. Their social media campaign #CashAppFriday garnered considerable traction and attention by encouraging customers to tweet about the product every Friday in a campaign built to send their users money.
In a similar move, Step targeted its younger audience with remarkably effective campaigns on TikTok like #TeamBlue / #TeamPink / #TeamYellow where users could tout the use of their Step card depending on the color of the card they chose.
Both brands executed an effective top-of-funnel strategy—but that would hardly matter without the highly social engagement that followed immediately after.
Going forward, FinTechs will have to continue to push the envelope to acquire customers in a hotly competitive market.
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*For an exhaustive look at the trends discussed in this blog series, reference this article.